June 9, 2021

#FIGHTFORFIFTEEN: Former McDonald’s CEO Just Explained How a $15 Minimum Wage Would Blow Up in Workers’ Faces.

Proponents of a federal $15 minimum wage like progressive Senator Bernie Sanders argue that it would lift millions of workers out of poverty. But the former CEO of McDonald’s just warned that artificially spiking the cost of labor could hasten the drive toward automation and instead leave many workers replaced with machines.

“They’re going to force the cost of labor up, which means it’s going to force management to find alternatives, which means they’re going to lose jobs,” Ed Rensi told Fox Business.

The former executive said that while mandating higher wages might sound great at first glance, companies like McDonald’s would respond either by hiking prices or finding ways to cut costs, such as increased automation.

QED: Chipotle Raised Its Minimum Wage to $15 and Now It’s Biting Customers in the Burrito. “According to Fox Business, the burrito chain is raising its prices by four percent in order to compensate for its wage hikes. ‘It made sense in this scenario to invest in our employees and get these restaurants staffed and make sure that we have the pipeline of people to support our growth,’ Chipotle CEO Brian Niccol said. ‘And then with that, we’ve taken some pricing to cover some of that investment.’ This could push some burritos into the $8 range that many already thought was overpriced.”

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